Overview

• On The Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy in Georgia, citing financial struggles from inflation, labor costs, and shifting consumer habits.
• The company has closed at least 40 underperforming locations across 24 states and plans to reject leases on additional closed sites.
• Despite the bankruptcy filing, 60 company-operated locations in 18 U.S. states and franchise locations in the U.S. and South Korea will remain open during the restructuring process.
• The chain has secured $10 million in funding to maintain operations and is pursuing a sale of its assets to an affiliate company.
• On The Border joins other casual dining chains like Red Lobster and TGI Fridays that have faced similar challenges in recent years.